March 10, 2021 - Written by James Fuller
The Pound continues to climb, and the British Pound to Australian Dollar (GBP/AUD) exchange rate is benefitting from weakness in the Australian Dollar today. Investors are selling the Australian Dollar after a solidly dovish tone from Reserve Bank of Australia (RBA) Governor Philip Lowe in a recent speech, while Sterling keeps benefitting from the market’s broad optimism that Britain will recover from the coronavirus pandemic.
Strength in both currencies has led to GBP/AUD volatility in recent weeks. Last week saw GBP/AUD tumble from the level of 1.8069 to briefly fall as low as 1.78 before rebounding and closing the week just below the level of 1.80.
Share:
The Australian Westpac Consumer Index improved in March to 2.6%.
The greenback remained on the back foot amid weaker yields, poor data.
AUD/USD is neutral-to-bullish, needs to extend advance beyond 0.7770.
The AUD/USD pair trades around 0.7730 heading into the US close, marginally higher daily basis amid a weaker greenback. Still, the latter has pulled back modestly from its monthly highs, and it’s unclear whether it could fall further. As it has been happening lately, it would depend on whether US Treasury yields extend their gains or not.
Australia published the March Westpac Consumer Confidence index, which printed at 2.6%, beating the expected 1.8%. Reserve Bank of Australia Governor Philip Lowe participated in a business summit but repeated well-known ideas. Among other things, he said that rates would remain low as long as wages remain depressed, regardless of the economy doing better than expected. On Thursday, Australia will publish Mach Consumer Inflation E
The Australian and New Zealand dollars rose against the greenback on Monday as the passage of a $1.9 trillion stimulus bill in the world's largest economy buoyed appetite for risk, underpinning commodity-linked currencies.
Week Ahead: Dollar rally continues as US yields rise
March 5, 2021SharePrint
The taperless tantrum could continue across financial markets now that it seems clear Fed Chair Powell won’t react until he sees disorderly market conditions or if financial conditions tighten further. Positive economic, such as this past employment report might continue to fuel optimism about the economic outlook and that could raise expectations that the Fed will raise rates sooner.
US
Financial markets will have their hands full trying to balance the impact on another massive relief bill, an improving labor market, and a bond market selloff that appears to have no signs of slowing down. The dollar has been running wild following the move in Treasuries and most signs are suggesting that move could continue.